Question: Can you please use excel formulas to solve it Problem Four (20 marks) DDD is debating the purchase of a new digital scanner. The scanner

 Can you please use excel formulas to solve it Problem Four

Can you please use excel formulas to solve it

Problem Four (20 marks) DDD is debating the purchase of a new digital scanner. The scanner they acquired 3 years ago for $800,000 is worth $320,000 today and will have a salvage value of $95,000 after 5 more years. The scanner generates revenues of $300,000 per year. The costs of operating the scanner are $130,000 per year. The company currently has $50,000 invested in operating networking capital. The new scanner will cost $980,000. The new scanner will generate revenues of $415,000 per year. In addition, the costs of operating the new scanner will be $125,000. The new scanner will allow the company to reduce its investment in operating net working capital to $15,000. At the end of 5 years, the new machine will have a salvage value of $220,000. The company's corporate tax rate is 32%, the CCA rate is 30% and the required rate of return is 10% Assume the asset class remains open, Using net present value (NPV) calculation, determine if the company should purchase the new scanner. Show all work

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